On The Record

On the record

February 4, 2000

NATIONAL

BUYOUT AIMS TO CREATE 1-STOP LINUX POWERHOUSE

SUNNYVALE, Calif. - Hoping to create a one-stop powerhouse devoted to upstart operating system Linux, VA Linux Systems Inc., which sells computers and services, on Thursday announced it has acquired Andover.Net Inc., a site dedicated to information about Linux. The cash and stock deal is worth about $1 billion. The addition of Acton, Mass.-based Andover.Net positions Sunnyvale, Calif.-based VA Linux Systems to provide a multitude of services for Linux programmers. Linux is widely used to power servers, the computers that run Web sites and perform other duties on networks. Andover.Net shares rose $9.13 a share Thursday to $45.13 on the Nasdaq Stock Market. VA Linux shares closed down $8.88 at $128.

WORLD ACCESS INC. TO SELL TELCO UNIT TO ISRAELI FIRM

ATLANTA - World Access Inc. said Thursday that it agreed to sell its Telco Systems Inc. unit to Israel's BATM Advanced Communications Ltd. for $326 million in cash and stock. Telco Systems, based in Norwood, Mass., manufactures network products for telecommunications services. World Access, headquartered in Atlanta, said the sale, which is expected to close next month, is part of a plan to focus on its core voice, data and Internet operations. World Access shares closed down $2.56 Thursday at $20.38 on the Nasdaq stock market. It had sales of $524.3 million in the nine months ended Sept. 30.

STATE

SHAREHOLDERS OK CHANGE OF FRP PROPERTIES' NAME

JACKSONVILLE - Shareholders of FRP Properties Inc. have approved a proposal to change the company's name to Patriot Transportation Holding Inc., as the transportation and real estate company moves ahead with plans to spin off its real estate business into a separate publicly traded company. Under the spinoff plan, which has been authorized by the company's board of directors, shareholders of FRP Properties will get one share of the real estate company, called FRP Development Corp., for each share of FRP Properties they currently own. FRP Properties will retain the transportation business and change its name to Patriot Transportation. Both stocks will be listed on the Nasdaq market. FRP Properties was created in 1986 as a spinoff company from Florida Rock Industries Inc. Those two companies retain close ties.

EARNINGS

KEEBLER FOODS CO.

ELMHURST, Ill. - Keebler Foods Co., the No. 2 U.S. cookie and cracker maker, said Thursday that its fourth-quarter profits before one-time items rose 28 percent, topping expectations, as sales rose. However, baking company Flowers Industries Inc., which owns a majority stake in Keebler, said its fourth-quarter profits excluding unusual items fell sharply from the prior year as it continued to struggle with production problems at its Mrs. Smith's Bakeries unit. Keebler, maker of Famous Amos and Girl Scout cookies, said it earned $43.6 million, or 50 cents a share, in the fourth quarter - beating analysts' estimates of 44 cents a share - before a one-time restructuring credit. That compares with $34.1 million, or 39 cents, in the same period a year ago. Keebler shares closed up 56 cents a share Thursday, at $23 on the New York Stock Exchange.

COLGATE-PALMOLIVE

NEW YORK - Colgate-Palmolive Co., the nation's top seller of toothpaste and a leader in the dishwashing-soap market, said Thursday that its profits rose 11 percent in the fourth quarter, beating Wall Street forecasts by a penny. The New York-based company said net income was $260.6 million, or 41 cents a share, in the final three months of 1999. That compared with $234.2 million, or 36 cents a share, a year earlier. Sales in the final quarter of 1999 totaled $2.34 billion, up 2.3 percent from $2.29 billion a year earlier. Colgate's stock closed down $1.31 a share Thursday at $60. Earnings for all of 1999 totaled $937.3 million, or $1.47 a share, improving from $848.6 million, or $1.30 a share, in 1998.

ANHEUSER-BUSCH

ST. LOUIS - Higher prices and continued strong beer sales helped push the profits of Anheuser-Busch Cos. up 13 percent in the fourth quarter, matching Wall Street expectations. The world's largest brewery, which also owns Busch Gardens and SeaWorld theme parks, said Thursday that it earned $190.6 million, or 41 cents a share, in the October through December period, compared with $168.6 million, or 35 cents a share, a year earlier, meeting Wall Street expectations. Anheuser-Busch shares closed down $2.06 Thursday at $67.75 on the New York Stock Exchange. The company's share of the domestic beer market for 1999 was 47.4 percent. For all of 1999, Anheuser-Busch earned $1.4 billion, or $2.94 per share, up from $1.23 billion, or $2.53 a share, in 1998.